The

Bartlett

Manufacturing Company's costing system has two direct-cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of standard direct manufacturing labor-hours (DMLH). At the beginning of

2020,

Bartlett

adopted the following standards for its manufacturing costs:

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Part 1

Requirement 1. Prepare a schedule of total standard manufacturing costs for the

8,400

output units in January

2020.

Direct materials
Direct manufacturing labor
Variable manufacturing overhead
Fixed manufacturing overhead
Total

Part 2

Requirement 2. For the month of January

2020,

compute the variances, indicating whether each is favorable (F) or unfavorable (U).

Before computing the variances complete the tables below. Begin by completing the table for direct materials.

		Actual Input Quantity Budgeted Price
	Actual Costs Incurred	Purchases	Usage	Flexible Budget
Direct materials

Part 3

a.

Direct materials price variance, based on purchases, is

Part 4

b.

The direct materials efficiency variance is

Part 5

Now complete the table for direct labor.

	Actual Costs Incurred	Actual Input Quantity Budgeted Price	Flexible Budget
Direct Manufacturing Labor

Part 6

c.

The direct manufacturing labor price variance is

Part 7

d.

The direct manufacturing labor efficiency variance is

Part 8

Next, complete the table for variable overhead.

	Actual Costs Incurred	Actual Input Quantity Budgeted Price	Flexible Budget	Allocated Overhead
Variable Manufacturing Overhead

Part 9

Finally, complete the table for fixed overhead.

	Actual Costs Incurred	Same Budgeted Lump Sum Regardless of Output Level	Flexible Budget	Allocated Overhead
Fixed Manufacturing Overhead

Part 10

e.

The total manufacturing overhead spending variance is

Part 11

f.

The variable manufacturing overhead efficiency variance is

Part 12

g.

The production-volume variance is

Data table Data table The denominator level for total manufacturing overhead per month in 2020 is 37,000 direct manufacturing labor-hours. Bartlett's budget for January 2020 was based on this denominator level. The records for January indicated the following: Requirements 1. Prepare a schedule of total standard manufacturing costs for the 8,400 output units in January 2020. 2. For the month of January 2020, compute the following variances, indicating whether each is favorable (F) or unfavorable (U) : a. Direct materials price variance, based on purchases b. Direct materials efficiency variance c. Direct manufacturing labor price variance d. Direct manufacturing labor efficiency variance e. Total manufacturing overhead spending variance f. Variable manufacturing overhead efficiency variance g. Production-volume variance